Central West wine producers say they will now be better placed to take on their rivals in Chile for a larger share of the lucrative Japanese market after Australia struck a free trade agreement with the east Asian nation.

The Prime Minister, Tony Abbott, finalised the key details in a meeting with his Japanese counterpart in Tokyo during a week-long visit to the region.

Justin Jarrett from Jarrett Wines near Orange says Chilean wine producers were given a significant boost in 2005 when the South American nation and Japan agreed to lower tariffs.

"Chile got a free trade agreement and at that stage Australia had 5 per cent of the export market to Japan and Chile had 4 per cent," Mr Jarrett said.